Daily Forex Analysis – October 8, 2008

GBPUSD Analysis.
After breaking below 1.7445 (Sep 11 low), GBPUSD rebounds from 1.7318 level, and might be forming a short term cycle bottom on 4-hour chart. Sideways consolidation in a range between 1.7318 and 1.7836 would be seen in a couple of days. As long as 1.7836 resistance holds, we’d expect down trend to resume, and deeper decline is still possible after consolidation.

20081008_gbpusd_1

USDCHF Analysis.
USDCHF breaks below the support of the up trend line from 1.0812 to 1.1217. Further pullback could be seen to test 1.1217 support. As long as 1.1217 level holds, the fall is treated as consolidation to up trend, and one more rise is still possible to 1.1700 zone. However, fall below 1.1217 level will indicate that the rise from 1.0693 has completed, and then deeper decline is expected to 1.1000 zone.

20081008_usdchf_1

AUDUSD Analysis.
AUDUSD rebounds from 0.6988 and is forming a short term cycle bottom on 4-hour chart. Rise to test the down trend line resistance is expected in a couple of days. However, the rise from 0.6988 is treated as correction to down trend, deeper decline is still possible to 0.6700 zone.

20081008_audusd_1

USDJPY Analysis.
After touching 100.22 level, USDJPY rebounds sharply to as high as 103.29 level. However, the rise from 100.22 is treated as consolidation to down trend, deeper decline is still possible to 98.00 zone after consolidation. Initial resistance is at 103.29 and followed by 104.50.

20081008_usdjpy_1

USDCAD Analysis.
USDCAD stays above the up trend line on 4-hour chart and remains in up trend. Further rise is still possible to 1.1300 zone. Initial support is at the up trend line, now at 1.0920, and as long as this level holds, up trend will continue.

20081008_usdcad_1

EURUSD Analysis.
EURUSD breaks above the resistance of the down trend line, and might be forming a short term cycle bottom at 1.3443 level on 4-hour chart. Sideways consolidation in a range between 1.3443 and 1.3906 would be seen in a couple of days. As long as 1.3906 resistance holds, the rise from 1.3443 is treated as correction to down trend, and deeper decline could be seen to 1.3200 zone after consolidation. Only rise above 1.3906 will indicate that the fall from 1.4867 has completed.

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